Overview

• Palestinian Authority President Mahmoud Abbas issued a decree transferring payments for families of prisoners and 'martyrs' from the Ministry of Social Development to a new agency, the Palestinian National Institution for Economic Empowerment.
• The changes aim to replace the controversial 'pay for slay' program with a needs-based social welfare system, but critics argue it may simply rebrand the payments under a different structure controlled by Abbas.
• Israel and Middle East analysts remain skeptical, claiming the payments will continue through alternative channels, undermining the stated reforms.
• The decision appears to be an effort to improve relations with the Trump administration, which has long demanded an end to the program as a condition for resuming U.S. aid to the PA.
• The move has drawn backlash from Palestinian factions, including Hamas, and risks further eroding Abbas's already low popularity among Palestinians.